Are Business Schools Milking Online Programs For Income?
Online MBA programs are booming, and business schools are cashing in. Once considered a second-tier alternative to full-time formats, these flexible programs are now central to many schools’ revenue models.
But are they worth what students are paying? And are schools prioritizing scale over quality? We’re going to unpack whether flexible MBAs are smart innovation, savvy monetization, or a little bit of both. Because when even top-ranked schools are pumping out Zoom-based degrees with hefty price tags, you’ve got to wonder: is the future of business education being built for access, or for profit?
Flexible MBA formats, particularly online and part-time programs, have exploded in popularity over the past few years. What started as a pandemic workaround has evolved into a core strategy for business schools looking to scale their offerings. And it’s working.
Applications to full-time MBAs have seen stagnation in many regions, while online MBA programs are gaining traction. Working professionals who can’t afford to pause their careers or relocate for a two-year degree are seriously benefiting, and schools love the model too. It’s cheaper to deliver, easier to scale globally, and highly profitable.
For students, the benefits are obvious: remote learning, career continuity, lower fees, and a better work-life balance. It’s now possible to earn a respected MBA from your kitchen table, and for many, that flexibility is non-negotiable.
But behind the shiny Zoom screens and global cohorts, one question lingers. Are schools really prioritizing accessibility, or simply following the money?
Value vs. Delivery: What Are Students Paying For?
Traditional full-time MBA programs have always promised more than just a curriculum. They offer an immersive experience of networking, leadership retreats, career fairs, international residencies, and a visceral campus culture.
But with online MBA programs, it can often be just you, your laptop, and a shared Slack channel.
That’s not necessarily a bad thing, as long as the price reflects it. Yet many online MBAs are charging fees that rival their full-time counterparts.
For some students, that’s fine. They’re paying for flexibility, not Friday-night drinks at the campus bar. For others, it raises eyebrows. Why does a “digital-first” MBA program cost tens of thousands of dollars if it’s essentially a playlist of recorded lectures?
A 2024 survey by New America found that 80% of Americans believe online learning should cost less than in-person programs. This is a clear signal that today’s learners expect both technological sophistication and pricing that reflects the format.
There’s also the prestige factor. Schools are banking on their brand equity to justify the cost, even when the learning experience is stripped down. But if you’re going to sell an elite degree at elite prices, shouldn’t the delivery feel… well, elite?
Why The Rankings Disparity?
Here’s the kicker: many of the same schools that dominate the global full-time MBA rankings barely get a mention in the FT Online MBA Ranking. It’s not because the students are any less talented. It’s because the metrics on which they are ranked are different.
Online MBAs are judged on things like student engagement, quality of tech delivery, and faculty training for virtual teaching. That’s a very different scoreboard from the one that rewards full-time MBAs for alumni salaries, international mobility, and recruiter impressions.
The problem? Employers don’t necessarily read the fine print. To them, a lower-ranked online degree might look like a lesser product, even when it comes from the exact same institution. And optics matter, especially when you’re spending tens of thousands of dollars on a brand-name credential.
So while online formats are growing, they’re also fighting a perception battle. As MASTERGRADSCHOOLS asked back in 2021, “Is Zoom University here to stay?” Or will rankings and reputation continue to punish online MBAs for not fitting neatly into traditional molds?
Dedicated Courses vs. Adapted Full-Time MBAs
Not all online MBA programs are created with digital learners in mind. Some institutions have embraced digital transformation, investing in purpose-built platforms, interactive learning tools, and asynchronous content. Others, however, have simply repurposed their on-campus syllabus for online delivery.
There’s a big difference between a digitally native program and a digitized one, and students are showing a preference for online learning technologies.
The best online MBAs are leveraging what the format does well. They offer self-paced learning, global cohorts, digital collaboration tools, and remote leadership simulations. Schools like ESMT Berlin are treating their online offering as a standalone product, not a diluted spin-off of the full-time MBA.
But some institutions are still riding on brand name alone, wrongly assuming that the same content in a new wrapper will be good enough. It won’t. Not when students are paying top dollar and can find personalized education pathways for free through tools like ChatGPT.
Institutions relying on brand reputation alone will struggle to compete. As the market matures, it is those schools that anticipate technological shifts like artificial intelligence and augmented reality that will deliver real value and remain competitive in a crowded landscape.
Expanding Access Through Online and Part-Time MBAs
For all the critiques, and there are plenty, online MBA programs have opened doors that the traditional model never could.
Full-time, in-person MBAs have always come with invisible barriers of time, money, geography, and accessibility. Taking two years off work isn’t an option for everyone. Neither is relocating to another country nor covering high living costs on top of tuition.
Online and part-time MBAs, on the other hand, are creating space for people who were never suitable candidates for the traditional MBA delivery format. Inclusion in these programs increases diversity in program cohorts, expanding the benefits for all students. An online or part-time MBA can reach a diverse cross-section of otherwise underserved potential candidates:
- Working parents balancing childcare with career moves.
- Professionals from lower-income backgrounds who can’t afford to hit pause on their paycheck.
- People with physical disabilities who find campus life inaccessible.
- Students from regions with low access to elite universities.
This represents a shift in who gets to participate in business education at all.
The Cost-Benefit Analysis of Online and Part-Time MBAs
Critics may turn their nose up at online formats. But access is power, and flexible MBAs are distributing that power more widely than ever before.
The US e-learning market will more than double from US$128.37 billion in 2024 to US$278.27 billion by 2033. However, that’s not the full story. These flexible formats are breaking down barriers that the traditional model couldn’t. As an example, the International Finance Corporation found that 45% of women and 60% of women caregivers say they would need to stop their studies without online learning options.
So, if institutions can widen access and turn a profit doing it? That’s not just smart business. It’s exactly what business education should be about.
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